Image source: The Motley Fool.Thursday, Apr 17, 2025CALL PARTICIPANTSChris McComish: Chief Executive OfficerMark Kochvar: Chief Financial OfficerDave Antolik: PresidentNeed a quote from one of our analysts? Email [email protected] EPS: 87¢, exceeding Q4 2024, Q1 2024, and consensus estimatesNet Income: $33 million for Q1 2025, surpassing both the previous quarter and the year-ago periodCustomer Deposit Growth: 7.23% annualized in Q1 2025, marking the seventh consecutive quarter of expansionLoan Growth: 4.89 ...

First Quarter 2025 Earnings Supplement Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2023, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and proje ...

S&T Bancorp (STBA) reported $93.75 million in revenue for the quarter ended March 2025, representing a year-over-year decline of 2.7%. EPS of $0.87 for the same period compares to $0.81 a year ago.The reported revenue represents a surprise of -2.95% over the Zacks Consensus Estimate of $96.6 million. With the consensus EPS estimate being $0.74, the EPS surprise was +17.57%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

S&T Bancorp (STBA) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.57%. A quarter ago, it was expected that this holding company for S&T Bank would post earnings of $0.78 per share when it actually produced earnings of $0.86, delivering a surprise of 10.26%.Over the last four quart ...

Financial Performance - Net income for Q1 2025 was $33.4 million, or $0.87 per diluted share, compared to $33.1 million, or $0.86 per diluted share in Q4 2024[1] - Net income for Q1 2025 was $33,401,000, representing a slight increase of 1.0% from $33,065,000 in Q4 2024[16] - Diluted earnings per share for Q1 2025 rose to $0.87, up from $0.86 in Q4 2024, indicating a growth of 1.2%[16] Asset and Loan Growth - Total portfolio loans increased by $93.4 million, or 4.89% annualized, compared to December 31, 2024[3] - Total assets increased to $9,718,276,000 in Q1 2025, compared to $9,657,972,000 in Q4 2024, marking a growth of 0.6%[17] - Total deposits rose by $109.8 million, or 5.72% annualized, with customer deposit growth of $134.7 million, or 7.23% annualized[7] - Total deposits reached $7,892,933,000 in Q1 2025, an increase of 1.4% from $7,783,117,000 in Q4 2024[17] - Average interest-earning assets rose to $8,899,485 thousand in Q1 2025, compared to $8,860,338 thousand in Q4 2024[22] Profitability Ratios - Return on average assets (ROA) was 1.41%, return on average equity (ROE) was 9.67%, and return on average tangible equity (ROTE) was 13.29%, showing slight improvements from Q4 2024[3] - The return on average assets for Q1 2025 was 1.41%, up from 1.37% in Q4 2024, reflecting improved asset efficiency[16] - Return on average tangible shareholders' equity (non-GAAP) was 13.29% in Q1 2025, slightly up from 13.25% in Q4 2024[20] Nonperforming Assets and Credit Quality - Nonperforming assets decreased by $5.5 million to $22.4 million, or 0.29% of total loans plus other real estate owned (OREO)[3] - Total nonperforming assets decreased to $22,368 thousand in Q1 2025 from $27,945 thousand in Q4 2024, a reduction of 20.1%[19] - Total nonaccrual loans decreased to $22,339 thousand in Q1 2025 from $27,937 thousand in Q4 2024, representing a decline of 20.5%[19] - The allowance for credit losses (ACL) was $99.0 million, or 1.26% of total portfolio loans, down from 1.31% at the end of Q4 2024[5] - Allowance for credit losses to total portfolio loans was 1.26% in Q1 2025, down from 1.31% in Q4 2024[19] - Net loan charge-offs were ($27) thousand in Q1 2025, a significant improvement compared to ($58) thousand in Q4 2024[19] Income and Expense Analysis - Total interest and dividend income for Q1 2025 was $124,848,000, a decrease of 2.4% from Q4 2024's $127,879,000[16] - Net interest income after provision for credit losses increased to $86,363,000 in Q1 2025, compared to $85,720,000 in Q4 2024, reflecting a growth of 0.8%[16] - Total noninterest income decreased to $10,429,000 in Q1 2025, down 6.0% from $11,071,000 in Q4 2024[16] - Noninterest income decreased by $0.7 million to $10.4 million due to seasonally slower customer activity[6] Capital Position - The company maintains a strong regulatory capital position with all capital ratios above the well-capitalized thresholds[8] - Shareholders' equity as a percentage of total assets improved to 14.59% in Q1 2025, compared to 14.29% in Q4 2024, demonstrating stronger capital position[17] Efficiency Metrics - The efficiency ratio (FTE) for Q1 2025 was 56.99%, slightly higher than 56.93% in Q4 2024, indicating a marginal increase in operational costs relative to income[16] - Efficiency ratio (non-GAAP) was 56.99% in Q1 2025, slightly higher than 56.93% in Q4 2024[20] Interest Margin - Net interest margin (NIM) on a fully taxable equivalent basis increased by 4 basis points to 3.81% compared to 3.77% in Q4 2024[4] - Net interest margin (FTE) improved to 3.81% in Q1 2025 compared to 3.77% in Q4 2024[22] Tangible Book Value - Tangible book value increased to $27.24 in Q1 2025, up from $26.25 in Q4 2024, reflecting a growth of 3.8%[20]

S&T Bancorp, Inc. is a $9.7 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn. To Ask Questions: Prior to the webcast, please email questions to [email protected]. Also, participants who log into the webcast will ha ...

Financial Performance - Total interest and dividend income for 2024 was $515,872,000, an increase of 7.9% from $477,901,000 in 2023[164]. - Net income for 2024 was $131.3 million, a decrease of 9.3% from $144.8 million in 2023, with diluted earnings per share (EPS) at $3.41 compared to $3.74 in 2023[170]. - Noninterest income fell by $8.5 million to $49.1 million in 2024, primarily due to $7.9 million in realized losses from the repositioning of securities[173]. - Total noninterest expense increased by $8.6 million to $218.9 million in 2024, with salaries and employee benefits rising by $10.5 million due to merit increases and new talent acquisition[174]. - The efficiency ratio (non-GAAP) for 2024 was 55.99%, compared to 51.35% in 2023, indicating a decline in operational efficiency[174]. - Comprehensive income for 2024 was $145,174,000, down from $166,005,000 in 2023[272]. Interest Income and Expense - Net interest income on an FTE basis for 2024 was $337,512,000, a decrease of 4.1% from $351,960,000 in 2023[164]. - The total interest expense for 2024 was $181,066,000, compared to $128,491,000 in 2023, reflecting a significant increase[164]. - Interest income on an FTE basis increased by $38.1 million to $518.6 million in 2024 compared to $480.5 million in 2023, primarily due to higher interest rates on interest-earning assets[181]. - The net interest margin on an FTE basis for 2024 was 3.82%, down from 4.13% in 2023[164]. - Net interest income decreased by $14.6 million, or 4.18%, to $334.8 million in 2024, with a net interest margin (NIM) on a fully taxable equivalent (FTE) basis of 3.82%, down 31 basis points from 4.13% in 2023[171]. Credit Quality and Losses - The allowance for credit losses (ACL) is subject to significant estimation uncertainty, with a potential increase of approximately 75% under a severely adverse economic scenario[155]. - The provision for credit losses significantly decreased to $0.1 million in 2024 from $17.9 million in 2023, reflecting improved asset quality[172]. - Net loan charge-offs for 2024 were $8.3 million, or 0.11% of average loans, down from $13.2 million, or 0.18%, in 2023[186]. - The Allowance for Credit Losses (ACL) was $101.5 million, or 1.31% of total portfolio loans, at December 31, 2024, down from $108.0 million, or 1.41% in 2023, reflecting a $6.5 million decrease due to improved asset quality[230]. Assets and Liabilities - Total assets increased to $9.57 billion in 2024 from $9.28 billion in 2023[180]. - Average shareholders' equity increased to $1.33 billion in 2024 from $1.23 billion in 2023, reflecting growth in the company's capital base[170]. - Total deposits increased to $7,783,117 thousand in 2024, up from $7,521,769 thousand in 2023, representing a growth of approximately 3.5%[270]. - Customer deposits increased by $411.7 million, or 5.8%, to $7.6 billion at December 31, 2024, while brokered deposits decreased by $150.4 million, or 40.0%[193]. - Total borrowings decreased by $253.3 million, from $503.6 million in 2023 to $250.3 million in 2024[239]. Strategic Focus and Future Outlook - The company aims to focus on growing its deposit franchise, core profitability, asset quality, and talent engagement in its strategic priorities for 2025 and beyond[168]. - The bank's management continuously monitors the loan portfolio for potential and emerging risks related to inflation and interest rate changes[257]. - The company plans to monitor its loan strategy and may revert to selling more residential mortgages in the future[215]. Regulatory and Compliance - The leverage ratio stood at 11.98%, significantly above the regulatory guideline of 5.00%[251]. - Common Equity Tier 1 ratio was 14.58%, exceeding the regulatory guideline of 6.50%[251]. - The effective tax rate increased to 20.4% in 2024 from 19.0% in 2023, primarily due to the adoption of new accounting standards[175]. Impairment and Goodwill - Goodwill was tested for impairment as of October 1, 2024, and was concluded to be not impaired[160]. - The company did not recognize any impairment charges on the securities portfolio in 2024, 2023, or 2022, indicating stable credit quality[198].

Core Insights - S&T Bank has been recognized for the second consecutive year on Forbes America's Best Banks list, ranking 46th overall and being the top-ranked bank headquartered in Pennsylvania [1][3]. Company Performance - The recognition is attributed to S&T Bank's focus on a people-forward purpose, which has led to strong results for stakeholders in 2024, fostering growth and optimism for 2025 [2]. - The evaluation for the Forbes list involved ten equally weighted metrics assessing growth, credit quality, and profitability for the 12 months ending September 30, 2024, along with stock performance for the 12 months ending January 10, 2025 [2]. Company Overview - S&T Bancorp, Inc. is a bank holding company with assets totaling $9.7 billion, headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [4]. - S&T Bank, the principal subsidiary, was established in 1902 and operates in Pennsylvania and Ohio [4].

Full Year and Fourth Quarter 2024 Earnings Supplement Forward Looking Statements and Risk Factors This information contains or incorporates statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial ...

Core Insights - S&T Bancorp reported revenue of $94.33 million for Q4 2024, marking an 8.6% year-over-year decline and a surprise of -2.95% compared to the Zacks Consensus Estimate of $97.2 million [1] - The EPS for the quarter was $0.86, down from $0.96 a year ago, but exceeded the consensus estimate of $0.78 by 10.26% [1] Financial Performance Metrics - The Efficiency Ratio (FTE) was reported at 56.9%, slightly above the estimated 56.7% [4] - The Net Interest Margin (FTE) (non-GAAP) remained stable at 3.8%, matching the analyst estimate [4] - Average interest-earning assets totaled $8.86 billion, slightly below the estimated $8.87 billion [4] - Net loan charge-offs were reported at 0%, better than the 0.2% average estimate [4] - Net interest income (FTE) (non-GAAP) was $83.92 million, exceeding the average estimate of $83.65 million [4] - Total Noninterest income was $11.07 million, significantly lower than the estimated $13.95 million [4] Stock Performance - Over the past month, S&T Bancorp shares returned -0.5%, while the Zacks S&P 500 composite increased by 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]